The first quarter of 2025 has delivered a strong pickup in Kenya’s real estate market, particularly in Nairobi’s satellite towns, according to the latest HassConsult Land and Property Price Indices. Both land and property prices saw improved growth compared to Q4 2024, with satellite towns emerging as the top performers.
Momentum Growth in Satellite Towns
Land prices in Nairobi’s satellite towns grew by 2.4% in Q1 2025, up from 1.9% in Q4 2024, while Nairobi suburbs posted a steady 1.7% growth, unchanged from the previous quarter.
Notably, Kiserian (+5.0%), Juja, and Thika outpaced higher-cost areas like Ruiru, showing that affordability and improved infrastructure are increasingly driving investment decisions. Ruaka, despite having the highest land price per acre at Ksh. 111.1 million, was the only satellite town to report a decline (-0.1%).
“Price affordability was a factor in the performance of the various satellite towns… towns with a more affordable price entry point outperformed nearby areas with costlier land,” said Sakina Hassanali, Co-CEO & Creative Director at HassConsult.
Within Nairobi, Spring Valley led with a 3.7% rise, followed by Karen and Upperhill at 2.9% each, reflecting continued demand in low-density zones, especially for detached housing where value appreciation is stronger.
Property Sales
Property sales prices rose by 2.45% in Q1 2025, up sharply from 0.8% in Q4 2024, making this the strongest quarterly performance since 2022. The annual price growth now stands at 4.9%, down slightly from 5.2% previously.
Again, satellite towns led the charge with average sales prices increasing by 2.4%. Juja (+4.2%) and Limuru (+4.0%) stood out as hot spots, with all 10 surveyed towns reporting gains.
In contrast, Nairobi suburbs registered a 5th consecutive quarterly contraction in house price, albeit milder at -0.4% compared to -0.8% in Q4 2024. Price sensitivity and global economic uncertainties appear to be dampening demand in high-end areas like Muthaiga, Nyari, and Kilimani, all of which posted declines.
Rental Market
Rents increased marginally by 0.3% overall, with Nairobi’s satellite towns again outperforming suburbs. Rent prices in satellite towns grew by 1.9%, led by Ruiru (+5.3%), Ngong (+5.1%), and Limuru (+4.9%). Meanwhile, rents in Nairobi suburbs fell by 0.8%, driven by reduced demand in Muthaiga (-4.9%) and Kilimani (-4.6%).
“The improvement of infrastructure and amenities has given satellite towns the convenience that was previously the preserve of suburbs… but at a lower average price point,” noted Ms. Hassanali.
The market trend suggests that buyers and tenants are seeking affordability, convenience, and value, and satellite towns now offer just that, thanks to better roads, new amenities, and improved digital connectivity.
For investors, the cost per acre, return on capital, and market activity levels are increasingly better in these emerging zones compared to saturated city suburbs. As economic conditions stabilize and infrastructural projects mature, satellite towns are poised for further gains.
In Q1 2025, land prices rose by 2.4% in Nairobi’s satellite towns and 1.7% in the suburbs. Property sales prices recorded an overall increase of 2.45%, marking the strongest quarterly performance since 2022. Rental prices also edged up by 0.3% overall, with a 1.9% increase in satellite towns offsetting a 0.8% decline in Nairobi suburbs.
The top-performing areas for land were Kiserian, Juja, and Limuru, while Ruiru, Ngong, and Juja led in property performance. However, high-end Nairobi suburbs continued to face price contractions, largely due to softened demand and the impact of reduced global funding.
As Nairobi’s real estate evolves, the message is clear: location is still king, but affordability is the new throne. Satellite towns are not just alternatives; they are becoming the new standard for growth.
